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Strudel team

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  • 1. WARNING
    All the information contained in this presentation is protected neither under the copyright laws of the United States nor under the laws of any other country. Any copying or public performance of such materials is not strictly forbidden. However, ‘Team Strudel’ will not hold any responsibility for the epic fail or dramatic success, caused to your business as a result of unauthorized reproduction or exploitation of the mentioned managerial solutions.
    A disclaimer
  • 2. ‘3M Russia’ electrics business
    development strategy
  • 3. Our team comes from a wide range of regions of the Russian Federation and Belarus: Orsha…
    Mariya Tugina
    (Orsha, Belarus)
    Moscow State University, Faculty of Global Studies, International Relations Department. 3rd year
    Our team
    Key directioins
    Strategy
    Risks & potential ROI
    Implementation
  • 4. Our team comes from a wide range of regions of the Russian Federation and Belarus: Kirovo-Chepetsk…
    Ekaterina Gorokhova
    (Kirovo-Chepetsk, Russia)
    Moscow State University, Faculty of Global Studies, International Relations Department. 3rd year
    Our team
    Key directioins
    Strategy
    Risks & potential ROI
    Implementation
  • 5. Our team comes from a wide range of regions of the Russian Federation and Belarus: Kislovodsk…
    Dmitri Kondrashov
    (Kislovodsk, Russia)
    The Russian Presidential Academy of National Economy and Public Administration. Faculty of Real Estate Management. Department of Marketing. 3rd year.
    Our team
    Key directioins
    Strategy
    Risks & potential ROI
    Implementation
  • 6. Our team comes from a wide range of regions of the Russian Federation and Belarus: Yuzhno-Sakhalinsk…
    Andrey Tugin
    (Yuzhno-Sakhalinsk)
    The Russian Presidential Academy of National Economy and Public Administration. Faculty of Real Estate Management. Department of Marketing. 3rd year.
    Our team
    Key directioins
    Strategy
    Risks & potential ROI
    Implementation
  • 7. Having analyzed strengths, weaknesses, opportunities and threats, we have identified key directions for development of 3M’s electrics business
    The goal for the team – to develop a set of measures that would increase brand awareness and sales of electrical products for ‘3M Russia’ by 50% over the next 2 and more than 25% over the next 3 years.
    Deepen penetration of the business in central Regions.
    Increase 3M brand awareness through a complex of marketing communications.
    Capitalize on building long term mutually beneficial relationships with the ultimate consumers, including retail customers.
    Become more ‘Russified’ and ‘closer’ to the ultimate consumers.
    Extend production lines.
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 8. The strategy for 3M’s electric business development should effectively combine both marketing and sales activities
    Handout pp. 5-8
    Sales strategy
    Marketing strategy & brand communications
    Private
    Housing
    Commercial Construction
    Industrial Enterprises
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 9. Most of the measures on B2B segment are of a relatively low risk but at the same time bring high return on investment
    Handout pp. 5-8
    Investment
    Risks
    ROI
    Description
    Commercial Construction
    Industrial Enterprises
    low
    medium
    high
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 10. However, the core point of the strategy is concentrating on the development of the unrealized potential of B2C market
    PrivateHousing
    At present time, B2C segment makes up only 10% of ‘3M Russia’s’ electrics business (the chart above).
    Most of the population of the country consumes less than $1000 worth of goods per capita per month (the graph above). However, there is clearly a high demand for consumer goods, pertaining to the residential construction in the regions other than Central (e.g. Volga, South and Siberian).
    This is why we believe there is high unrealized potential in the economy segment of electrics business.
    Source of the graphs: case data, Troika Dialog
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 11. Developing client relationships on B2B market implicates positioning of 3M merchandize on lower than usual segments (middle-low and economy)
    Targeted positioning
    3M Positioning now
    Х
    Х
    Х
    Price
    Price
    Quality
    Quality
    The current positioning of 3M’s products implicates operating on the high and middle-high segments.
    We recommend that 3M enters middle-low and economy price segments.
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 12. 3M might take into consideration three strategic alternatives for positioning on a new segment
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 13. However, the first two options are not beneficial for the company
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 14. However, the first two options are not beneficial for the company
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 15. We recommend that 3M enters low segment of Russian electrics market by acquiring a local wholesaler
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 16. Acquiring a wholesaler should bring certain benefits for 3M
    x
    x
    We recommend that 3M enters regional middle-low and economy electrics markets through acquisition of a local wholesaler.
    This will:
    • Get 3M closer to the ultimate consumer
    • 17. Increase 3M’s presence in the regions of the country
    • 18. Eliminate intermediary expenses
    • 19. Integrate two businesses (production and distribution) vertically, which will let reduce costs and, thereby, cut prices to position the products on a lower segment
    • 20. Let 3M control the merchandizing and the shelf life of its electrical products
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 21. The choice of ElektroMIR is defined by its beneficial location and opportunities of growth
    x
    x
    x
    Acquisition of ElektroMIR is a better option for 3M due to the following reasons:
    - ElektroMIR is based in one of the main transportation HUBs of the Russian Federation – Yekaterinburg
    • 3M acquires a distribution channel in the Ural region, the presence in which is lower than in the other key regions
    • 22. An opportunity to penetrate further into the regions
    Nizhniy Novgorod
    Kazan
    Yekaterinburg
    Novosibirsk
    St. Petersburg
    Krasnoyarsk
    Khabarovsk
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 23. The overall strategy implicates accepting a number of risks
    Level
    Description of the risk
    Measure
    Commercial Construction & Industrial enterprises
    Handout, pp.9-10
    Private housing
    low
    medium
    high
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 24. Successful mitigation of the risks promises relatively high return on investment for the company
    Potential ROI
    Ways of mitigating the risk
    Measure
    Commercial Construction & Industrial enterprises
    Handout, pp.9-10
    Private housing
    low
    medium
    high
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 25. January 2012
    February
    2012
    March
    2012
    June 2011
    July 2011
    August
    2011
    September
    2011
    October
    2011
    November
    2011
    December
    2011
    Today
    DesigningaprojectСб 09.04.11 - Чт 05.05.11
    Negotiating
    Delegatinglogistics
    Magazinesadvertizing. POS Displays
    Landing contracts for state-funded infrastructural projectsПт 06.05.11 - Вт 02.08.11
    Start of the project
    Client Technological centre in Novosibirsk launched
    Industrial Automation Russia
    Electric Mains of Russia
    End
    DIT Market
    Client technological centre in St. Petersburg launched
    Buyout of ElektroMIR
    The active phase of the implementation of the strategy is expected to take around 10 months and will, in the most probable scenario, accumulatively bring the targeted profits by the year of 2014
    Our team
    Key directions
    Strategy
    Risks & potential ROI
    Implementation
  • 26. Ekaterina Gorokhova
    (Kirovo-Chepetsk)
    Moscow State University, Faculty of Global Studies, International Relations Department. 3rd year
    Mariya Tugina
    (Orsha, Belarus)
    Moscow State University, Faculty of Global Studies, International Relations Department. 3rd year
    Dmitri Kondrashov
    (Kislovodsk)
    The Russian Presidential Academy of National Economy and Public Administration. Faculty of Real Estate Management. Department of Marketing. 3rd year.
    Andrey Tugin
    (Yuzhno-Sakhalinsk)
    The Russian Presidential Academy of National Economy and Public Administration. Faculty of Real Estate Management. Department of Marketing. 3rd year.
    THANK YOU FOR YOUR ATTENTION. QUESTIONS?
  • 27. Appx.